The overconfidence bias of the principal and agent on the would firm ' s common signal quality of increase agency cost and worsen the moral hazard problem.

委托人和代理人在公司信息方面的过度自信偏差都将提高代理成本、恶化道德风险问题。

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Professor Michael Jensen of Harvard Business School (along with Bill Meckling of Rochester) did some formidable research now almost 40 years ago on the agency-principal problem in modern corporate America.

FORBES: The Difference Between The Mindsets Of Founders And Professional Managers